How to Pick The Best Masternode Coins To Invest In And The Things To Look Out For?
In making an attempt to invest in the cryptosphere, many get confused and end up getting either scammed or frustrated with events in the cryptosphere.
The cryptospace is a highly volatile sphere where a very revered coin or token today may lose a significant portion of its value in a matter or days, hours or even minutes in the most exceptional scenarios.
The volatility of digital currencies can either present a good opportunity for those who has mastered the space or cause losses to people without remorse. The article today is aimed at guiding investors new to the cryptosphere or those who are looking at possibilities of investing in Masternode services.
Overview of Masternode Coins/services
Masternodes presents an investment opportunity in the cryptosphere to establish an effective alternative to cryptocurrency mining. Masternodes took a debut into the cryptosphere when DASH, a fork of Bitcoin released as XCoin (XCO) in January 2014 (then Darkcoin and finally Dash), incorporated Proof of Stake model of verifying transaction blocks in its protocols. PIVX coin also prides itself amongst the pioneering altcoins that adopted masternode model.
Since then, Masternodes have become increasingly popular both in terms of offering and awareness, especially among privacy-focused coins.
We can say that there has been a huge integration of Masternode as an income means since the introduction of Dash, as obvious in the cryptocurrency’s market cap. Masternode unlike its counterpart mining offers an easy investment path eliminating the huge costs involved in setting up and owning a rig for mining.
Having given a brief introduction to Masternodes, let’s delve into what any intending investor should do to before investing in Masternodes and afterwards:
Learn about the different masternode coins/offering:
Constant knowledge build up is the key in getting by in the Cryptosphere. There are over 450 masternode coins according to the website masternode.pro. As an intending investor in masternode services, you should take out time to learn about the various cryptocurrencies offering masternode services.
In considering their offering, watch out for the masternode coins that offer Shared Masternode Services which is a good way to be a part of masternode investments without worrying about the huge costs that may be associated.
Choose a suitable coin:
succeeding your findings about the different masternode coins should be the selection of a coin. Consider the following tips when choosing a masternode coin to invest with;
- The coins with a promising market target/niche such as funds transfer etc.
- When the coin was established (older coins are more stable)
- Its current market capitalization (higher market cap shows good coin integration)
- Number of current active masternode (shows how much people are investing in the coins masternode service)
- The potential return on investment
These details and more can be obtained from masternode.pro, the individual masternode project website and coin market cap.
Compare the financial requirements:
While setting up a mining rig can be outrageously expensive, establishing masternode investments aren’t cheap either.
To set up Dash masternode requires 1000 Dash coins which is equivalent to about $165,000. The best coin to choose are those that would not wreck your budget or account while promising good returns on investments.
Set up Account with the Masternode coin:
After you must have followed step 1 through 3 and decided on which coin to invest in, open account on the masternode coins official site and follow instruction therein to set up your masternode or to join an existing masternode service.
Track your Investment:
Owing to the volatility of the cryptosphere, it is pertinent as an investor for you to follow or track your investments. The Coin Market Cap Mobile App can help with this as it gives a per hour update on price fluctuations of listed coins. This way, you’ll get a first hand update about the growth of your coin.
Over to You
I believe you stumbled upon this article because you are interested in investing in Masternodes.
While I tried not to recommend any masternode coin as the ideal coin to invest in, I believe a diligent adherence to the first 3 steps highlighted above would help give you an idea of a good and profitable masternode to invest in. I therefore wish you a happy Masternoding.